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India’s economy grew at its weakest pace in a decade during 2012-13, as high interest rates and persistently steep inflation undermined consumer spending and prompted a sharp fall in business investment.

Asia’s third-biggest economy, once a star performer globally, expanded at 5 per cent during the 12 months to March 31 — nearly half the 9 per cent figure recorded two years ago.

The pace of growth was also markedly weaker than the 6.2 per cent rate of growth recorded in 2011-12.

According to figures from India’s statistics ministry, GDP growth during the final quarter of the year, between January and